Compton to acquire Hornet Energy

By the OGJ Online Staff

CALGARY, May 16 -- Compton Petroleum Corp., Calgary, has agreed to acquire Hornet Energy Ltd., Calgary, for about $32 million (Can.) in cash and assumption of $8.2 million in debt.

The cash offer is worth $2/share, which represents a 23% premium to Hornet's 10-day weighted average trading price. The deal is expected to close by July 16.

Hornet is producing 810 boe/d, and says it will add 200 boe/d after installation of compression and facilities.

Compton produces 14,812 boe/d from properties in Western Canada.

Directors of both companies have approved the transaction, subject to the execution of a definitive preacquisition agreement, expected by May 28. Hornet shareholders must approve the deal and tender two thirds of Hornet shares.